Making a noteworthy insider sell on November 26, Balkrishan Kalra, President and CEO at Genpact G, is reported in the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Kalra executed a sale of 9,000 shares of Genpact with a total value of $417,600.

At Wednesday morning, Genpact shares are up by 0.06%, trading at $46.85.

Discovering Genpact: A Closer Look

Genpact Ltd is a provider of business process management services. Clients are industry verticals and operate in banking and financial services, insurance, capital markets, consumer product goods, life sciences, infrastructure, manufacturing and services, healthcare, and high-tech. Genpact’s services include aftermarket, direct procurement, risk and compliance, human resources, IT, industrial solutions, collections, finance and accounting, and media services. Genpact’s end market by revenue is India. It is a General Electric spin-off, which is still a large source of revenue for Genpact.

Unraveling the Financial Story of Genpact

Revenue Growth: Genpact’s revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 6.62%. This indicates a substantial increase in the company’s top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Key Profitability Indicators:

• Gross Margin: The company shows a low gross margin of 35.63%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Genpact’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.75.

Debt Management: Genpact’s debt-to-equity ratio is below the industry average. With a ratio of 0.78, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 12.86 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.82, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Genpact’s EV/EBITDA ratio, surpassing industry averages at 10.99, positions it with an above-average valuation in the market.

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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Navigating the Impact of Insider Transactions on Investments

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Exploring Key Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Genpact’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.